Rental properties are generally perceived as a substandard investment in real estate. Does owning a property qualifies as something better than renting a property? Apparently, the chief executive of the Real Estate Institute of Victoria has a different view on rental properties. The interesting fact about Quentin Kilian is that he does not own a home and lives in a rental property with his wife. It may seem out of place albeit with some solid reasons that back up Quentin’s decision. Let us take a look at why renting is a better choice than owning properties in the following post.
A Property Moghul without His Own Home
Quentin Kilian disclosed that he lived in a rental property in his speech, at a recently concluded property forum. Many people at the event were perplexed by such a piece of information coming from a real-estate giant. However, the reasons for which Quentin preferred a rental property can offer a clear explanation for his decision.
Age of Buyers and Home Ownership
First of all, Quentin claimed that he and his wife are in the age group where they don’t need to own their house. The general preferences of buyers for properties revolve around upgrading and downgrading. People buy their first home, usually a small one and within a low budget and upgrade when they have children. Upgrading could mean moving into a bigger home and when the kids grow up and move out, you could move back into a smaller home with downsizing.
Burden of Stamp Duty
You must be wondering why Quentin does not choose a downsized property, if he wants to avoid unnecessary expenses. The property prices in the area Quentin was scouting amounted to almost one to two million. Now, there is no way Quentin could not afford the price of the said property. However, he preferred to avoid purchasing the property, owing to the burden of stamp duty. Apparently, stamp duty on purchase of the property could cost around $80,000 to $100,000.
Could You Buy a Property in Australia?
Quentin believes that the stamp duty is a formidable barrier for home ownership in Australian property market, especially for first-time buyers. The additional amount for stamp duty over the hefty deposit for purchasing the property can be challenging for buyers with a fixed budget. As a result, the stamp duty could impose formidable setbacks on mobility of properties. On the other hand, recent advancements in discussions around regulatory changes alongside the emphasis on rental properties could offer a reliable solution moving forward.
